Senate: Government to plug advertising rules to protect house buyers

The government will plug the advertising rules to prevent house buyers from being cheated by unscrupulous housing developers.

Deputy Minister of Urban Wellbeing, Housing and Local Government Datuk Halimah Sadique said the housing developers would not be allowed to advertise things that could not be verified.

"The prohibition includes advertising about free legal fees, return on investment and projected rental income.

"The housing developers also cannot mention panoramic view, proximity of housing projects to known destinations and misleading pricing," she said replying a question from Senator Datuk Seri Syed Ibrahim Kader in the Dewan Negara, here Monday.

Halimah said all housing developers are covered by Regulation 8 (1) of the Housing Development (Control and Licensing) Act 1966 (Act 118).

From 2009 to December 2013, a total of 816 compounds were issued to housing developers who violated Rule 8 (1) in relation to housing advertising.

Under the act, housing developers may be compounded up to RM20,000 and board members may be blacklisted if they failed to settle the compounds or repeat the offences.